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Archive for Sunday, March 18, 2001

Kansas railway up for sale

Parent company puts shortline on auction block

March 18, 2001

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— The state's largest shortline railroad may soon change hands and south-central Kansas railshippers are welcoming the news.

Central Kansas Railway President Bill Frederick confirmed Friday that the railroad's parent company, Denver-based OmniTrax, is negotiating to sell its Kansas property.

Despite being the state's largest shortline railroad, Central has abandoned hundreds of miles of track over the past decade and railshippers have seen soaring land lease prices along with the steady decline in service.

"I think if we were dealing with a new owner, things might change," said Charlie Swayze, manager of the Farmers Equity Co-op at Isabel and a vocal supporter of shortline service in the state. "I certainly can't see how service could get much worse than it is now."

The railway started operations in 1992 after OmniTrax bought more than 1,000 miles of track that were being abandoned by the Santa Fe or Union Pacific railroads.

OmniTrax then had several of what it termed as "startup glitches."

The company raised land lease rates as much as five-fold while rail service to dozens of elevators was reduced or eliminated. Tracks fell into disrepair, cars didn't arrive on time and lines were embargoed and then abandoned.

Central officials say that in the last three years the railroad has tried hard to improve service.

This year an additional 255 miles of track are scheduled to be abandoned.

Shippers have requested that the Kansas Legislature approve a resolution asking for a moratorium on rail abandonment while a state transportation study is conducted. The House Transportation Committee heard testimony on that request last Tuesday.

Wichita officials plan to eliminate the Cowskin Creek railroad bridge, which is part of Central's line, but it depends on the abandonment being approved.

Frederick said he didn't know whether the company's 16-mile line from Garden Plain to Wichita, where that railroad bridge is located, would be part of the pending deal.

Carl Gibson of the Wichita city engineer's office said he didn't think the railroad's sale would affect the city's plan to remove the bridge and complete highway interchange projects and establish greenways.

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